Claypool says Rauner made it clear Wednesday he won't do anything to change the fundamental inequity, adding the Republican Rauner "defended a system that is indefensible."

In his address before Illinois General Assembly Wednesday, Rauner gave lawmakers two options, either work with him on his cost-saving proposals, or cuts to state programs will be made. Rauner also called on lawmakers to give him a stand-alone funding bill supporting early childhood education and primary and secondary schools.

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4:30 p.m.

Senate President John Cullerton says Gov. Bruce Rauner's "sketch" of a budget proposal Wednesday is more than $3 billion short of necessary revenue. The Chicago Democrat says that doesn't count the deficit the state is building in the current year because lawmakers and the Republican governor never approved a budget last summer.

Cullerton complimented Rauner for saying education should get more money. But he says the formula used to provide money to schools must be changed first. And he says the governor offered a "sketch" and not a spending blueprint.

Rauner continues to demand conservative changes to workers comp and collective bargaining laws in exchange for a tax increase to manage the deficit. Cullerton says any tax increase would have to come from Rauner and get GOP support because Democrats cannot approve it alone.

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4 p.m.

Chants calling for Illinois Gov. Bruce Rauner to fund higher education filled the Capitol's third floor rotunda as he delivered his budget address.

Hundreds of students from the state's colleges and universities stood outside House chamber doors Wednesday calling for Rauner to sign a budget and fund higher education.

"Save our schools," students yelled.

As Rauner left the House chamber following his speech he was met with boos from demonstrators. A group of Chicago State University students chanted, "This is what democracy looks like," as a handful of lawmakers exited the chamber.

Black caucus leader Sen. Kimberly Lightford — a Democrat from Maywood — says the Republican governor's address was full of rhetoric that did not address higher education funding.

The Chicago Democrat says Rauner's conservative agenda is too "extreme" to trust him with that power. Lawmakers gave similar authority in the past to former Democratic Gov. Pat Quinn.

Madigan favors Rauner's idea for expanded school spending, but says it should include money for community college and needs-based tuition grants which Rauner has rejected. He questioned whether House Republicans would support Rauner's separate spending authority.

Christine Radogno (ruh-DOHN'-yoh) is minority leader of the Senate. The Lemont Republican told reporters separate education funding legislation would be "piecemeal" budgeting Rauner opposes, but that education is Springfield lawmakers' top priority and parents of schoolchildren have to have certainty about opening the classrooms.

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12:30 p.m.

Gov. Bruce Rauner is touting steps he's taken that he believes will help save Illinois money amid historic budget gridlock.

The first-term Republican governor reiterated ideas he's set into motion during a budget speech on Wednesday in Springfield.

He tells lawmakers that his plan to cut the time it takes to buy products by streamlining the procurement process will save over $500 million a year.

Rauner also says that selling the downtown Chicago building that houses state government officers, the James R. Thompson Center, will also cut costs for the state.

He adds that he's also been negotiating with unions "in good faith" on plans that could save taxpayers of $3 billion over the next three years.

Rauner delivered his second budget address Wednesday in Springfield. He calls considering such bills a waste of time and says Illinois residents want the Democrat-controlled Legislature and Republican governor to work together.

Rauner is using his speech to give legislators a choice to either implement his cost-saving proposals in exchange for a $36 billion budget or allow him to make $4 billion in cuts to end a months-long budget stalemate.

The speech comes amid historic budget gridlock. The state has been operating without a spending plan for eight months.

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12 p.m.

Gov. Bruce Rauner is giving Illinois lawmakers a choice to either implement his cost-saving proposals in exchange for a $36 billion budget or give him authority to make $4 billion in cuts to end a months-long budget stalemate.

The options are outlined in the Republican governor's budget address to lawmakers Wednesday. Rauner is giving his second budget address amid a historic budget gridlock that has Illinois operating without a budget for eight months now, triggering massive cuts to social service programs and higher education.

Democrats have already balked at the idea of giving Rauner unilateral power to make cuts. And they've dismissed Rauner's suggested reforms, like curbing the power of unions and instituting term limits.

A budget with cuts would be $32.8 billion because the state doesn't have enough revenue to match a $36 billion spending plan.

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1:20 a.m.

Gov. Bruce Rauner is set to deliver his annual budget address to state lawmakers as Illinois enters its eighth month without a spending plan for the current year.

The standoff with majority Democrats over the budget — and what Rauner proposes to do to resolve it — will likely overshadow many of the initiatives the Republican governor plans to unveil Wednesday.

He will be calling for more funding for public schools. But without a budget plan it remains to be seen how he will make that happen.

The state's spending plan should have taken effect July 1.

Illinois faces a roughly $5 billion budget deficit this year, and its unpaid bill backlog could reach almost $26 billion by 2020 if current revenue and spending policies continue.